Monday, January 14th 2019
Activision-Blizzard Stock Valuation Falls 10% in Wake of Bungie Split
Whether Activision-Blizzard's split from Destiny and Destiny 2 developer Bungie was caused by an overzealous grip on Bungie's creative vision or not is something that will likely never be clarified. But one thing is for certain: in the stock market, it doesn't really matter how something happened, but really what the effects are of it happening. And Bungie splitting from Activision-Blizzard means that the industry behemoth now finds itself with one less IP under its belt, thus constraining its revenue sources to a couple of high-profile IPs. Less sources of income = less versatility and resilience to market fluctuations, and that is something Activision-Blizzard was immediately hit back for from investors.
The company's stock decreased by as much as 11% in the wake of the Bungie split, from a high of $51.35 down to a low of $45.19, as investors reduced their trust in the company's profit volume and momentum. It has since recovered, but is still some 9% down. Whether Activision actually expected this much of a fall or not only the company knows. It'll be interesting to see the company's next financial report, though.
Source:
Yahoo Finance
The company's stock decreased by as much as 11% in the wake of the Bungie split, from a high of $51.35 down to a low of $45.19, as investors reduced their trust in the company's profit volume and momentum. It has since recovered, but is still some 9% down. Whether Activision actually expected this much of a fall or not only the company knows. It'll be interesting to see the company's next financial report, though.
16 Comments on Activision-Blizzard Stock Valuation Falls 10% in Wake of Bungie Split
I think what really happened is that Destiny was never the success it ought to be and this is considered win-win for all involved. This wasn't for the gamers at all.
Granted it was a 10 year agreement that simply was ended rather than renewed, so that saved a little face. But this change was a shock to the industry and normally it would have just been quietly renewed and continued. Bungie really wanted badly to get out of Activision to do this.
I used to think that those from InfinityWard escaped the grasps of Activision to do something better with their lives but they've only gone to get dragged back into a toxic environment by another company that is equally as bad and as greedy as the one they all left.
(A lot of the original CoD team ended up working at Respawn)
Hey wait, I actually buy Activision (Blizzard) games so I'm a crybaby too hahaha. But EA was banned from my shopping list long time ago, maybe 15 years.
Be prepared to open your wallets while they try to recoup this from you.
Of course Activision bosses want $$$ and press developers to produce the same thing over and over instead of creating something new that might or might not sell well. Keeping the same game is cheaper and less risky. Sure, sales might fall a bit, but profits stay high.
On the other hand, nothing lasts forever and WoW has been a success for too long. It's basically the same thing, just gets more polished with every expansion / patch.
Destiny is my most played hours on my PS4 from day 1, purely because I enjoyed playing with friends.
I hope Bungie will work on something new and move away from FPS genre and try different genre altogether now that they have split from Activision.
Looks like a good call to me.